Sources cited by Puck News on May 17, 2026, indicate that this agreement values the San Francisco-based apparel company at about $100m.

Everlane’s board approved the transaction over the weekend, according to those familiar with the negotiations.

The report also noted that holders of Everlane’s common stock are not expected to receive any payout.

The specifics regarding whether the deal involves a cash transaction or whether preferred shareholders will receive compensation in the form of Shein shares remain unclear.

Shein and L Catterton did not respond to Just Style's request for a comment at the time of reporting.

In previous reports, Puck News had disclosed that L Catterton, in conjunction with Everlane CEO Alfred Chang, was searching for an investor to help manage about $90m in debt.

The private equity firm was prepared to contribute more funds if another investor could be found, but was also open to a full sale of the company.

Amid these difficulties, the company sought a turnaround but struggled with growing debt.

Recently, Everlane was reported to be facing legal action from its long-term landlord, who alleges that the retailer failed to pay overdue rent for its San Francisco headquarters.

The Gazetteer SF reports that as of 18 March, a notice was served to Everlane claiming more than $51,000 in unpaid rent for offices on Folsom Street.